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How Citadao Works: A User’s Perspective
August 7, 2021
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Regardless of whether you’re a landlord trying to sell all or part of a property you own, an investor trying to get exposure to real estate all around the world, or a DeFi yield farmer trying to generate stable outsized returns from Liquidity Pools, Citadao has a unique value proposition to offer you! Read on to see how anyone excited by the intersection of real estate investment and DeFi can benefit from the Citadao platform.


In addition to providing a place to live, real estate also presents a great investment opportunity that can accrue in wealth and value. As a landlord, you may want to realize the gains on your real estate asset by selling your property, or you may just want to diversify financially or gain quick access to liquidity by selling a fractional share of your property. Citadao makes it easy to sell your property through our Initial Real Estate Offering (IRO).

Simply log onto the platform and list the real estate property you want to sell, in whole or in part. You just need to provide us with information on what portion of the property you are selling and what price you are selling at, some legal paperwork proving your ownership of the property, and a few additional details (such as the property’s size, location, and interesting features). After a quick and easy process to verify your ownership of the property, Citadao will take the property (or fraction of a property) which you will sell and offer it to investors on our platform through the IRO.

Once the investors have purchased stakes in your property through the IRO process, they will receive newly minted ERC20 fractions corresponding to their ownership stake in the property. In return for offering your property to the investors, you will receive Ether tokens corresponding to the sale price. And voila! Just like that, you’ve been able to sell part or all of your property, and received valuable Ether tokens in return. You can go on to sell those Ether tokens for fiat currency, trade them for other cryptocurrencies, or hold them as an investment — it’s all up to you now that you took profits on your property and traded it for liquid assets.


Let’s say you want to increase your investment’s exposure to real estate from all around the world. Maybe you just want additional assets to hedge your portfolio, maybe your investment thesis involves real estate (or perhaps inflation!) skyrocketing in a particular area, or perhaps you want to quickly and seamlessly access a new residence in another part of the world. Regardless of the reason, Citadao can help you secure rights to real estate assets in any of the 54 Commonwealth nations across the globe.

There are two ways to invest in real estate assets that have been tokenized by Citadao. If the property that interests you is currently being offered by a landlord through an Initial Real Estate Offering (IRO), you can purchase ERC20 real estate fractions that are being minted directly on the platform. Alternatively, if the property that interests you has already completed its IRO, you can still acquire its real estate fractions by purchasing the corresponding ERC20 tokens on DeFi Automated Market Makers. Not only does the real estate fraction ERC20 token represent ownership of part of the property, in some cases the token can even be used for usage of the property (for example, access to a co-working space or co-living space).

Since Citadao converts ownership of the property into ERC20 tokens, the rights to the real estate fractions can be freely acquired in exchange for any of the most popular Ethereum native tokens, such as Ether or USDC. Investors can mix and match shares of real estate fractions based on their investment theses, risk profiles, hedging strategies, and so forth. With Citadao, anyone can now diversify their real estate holdings as they see fit!

Investors who want to purchase a real estate property outright will need to acquire tokens representing percentage ownership above a certain buyout threshold. At that point, a buyout protocol will be initiated, and the person purchasing the real estate will have to collateralize all the remaining real estate fractions at an acceptable buyout price. Once this process completes, a respected law firm partnered with Citadao will review the legal paperwork and then transfer the legal title to the new owner via a Non-Fungible Token (NFT).

Yield Farmers

Yield farmers are always on the lookout for assets that can be leveraged to generate high returns in Liquidity Pools. Citadao’s ERC20 real estate fractions will benefit these yield farmers by providing a stable, time tested source of value that can be staked for incredible returns. In return for staking their real estate fractions, users will earn the valuable Citadao (CITX) token, which have multiple uses:

  • Governance — CITX tokens can be staked to vote on important decisions such as new platform features, revenue sharing, project leadership, and more. As a Decentralized Autonomous Organization, Citadao is highly dependent on CITX tokenholders to guide the project into the future.
  • Real estate ownership — Two percent of all real estate listed on the Citadao platform will be owned by the DAO itself, with ownership proportionally spread among the holders of CITX tokens. Owning CITX tokens is a simple way to gain broad and diversified exposure to real estate across the entire Citadao platform. CITX token holders can stake their tokens to propose to sell these assets held by the Citadao treasury, or to vote on whether to complete these asset sales.
  • Revenue — Any income generated by this two percent real estate ownership will be used to buy back CITX tokens.
  • Fees — Citadao platform charges small fees (all fractions of one percent) for activities such as trading, listing, staking, underwriting new properties and so forth. These fees will be used to reward Liquidity Providers, buy back CITX tokens, or accrue as revenue in the Treasury (at which point CITX holders will be able to vote on how these funds will be used).
  • Priority Access — As the Citadao platform grows, CITX token holders will have priority access to new property IROs.

Something for Everyone

Whether you’re a landlord, investor, or a DeFi yield farmer, there are ways you can benefit from real estate that’s more accessible, liquid, transparent, scalable and composable. In short, there are immense benefits for everyone once real estate is tokenized on the blockchain. It’s all part of Citadao’s plan to use Decentralized Finance to reinvent real estate!

Interested to learn more about Citadao? Follow us on Twitter @citadao_io, join our community on Discord, or check out our website citadao.io
Disclaimer: The information contained in this communication is based on sources considered to be reliable, but not guaranteed, to be accurate or complete. This communication should not be relied upon or the basis for making any investment decision or be construed as a recommendation to engage in any transaction or be construed as a recommendation of any investment strategy

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